                                 CODE OF VIRGINIA

DIRECT PAYMENT PERMITS (§ 58.1-658)

A. Notwithstanding any other provision of this chapter, the Tax Commissioner
shall authorize a person who uses taxable communications services within the
Commonwealth to pay any tax levied by this chapter directly to the Commonwealth
and waive the collection of the tax by the communications services provider. No
such authority shall be granted or exercised except upon application to the Tax
Commissioner and issuance by the Tax Commissioner of a direct payment permit. If
a direct payment permit is issued, then payment of the communications sales and
use tax on taxable communications services shall be made directly to the Tax
Commissioner by the permit holder.

B. On or before the twentieth day of each month every permit holder shall file
with the Tax Commissioner a return for the preceding month, in a form prescribed
by the Tax Commissioner, showing the total value of the taxable communications
services so used, the amount of tax due from the permit holder, which amount
shall be paid to the Tax Commissioner with the submitted return, and other
information as the Tax Commissioner deems reasonably necessary. The Tax
Commissioner, upon written request by the permit holder, may grant a reasonable
extension of time for filing returns and paying the tax. Interest on the tax
shall be chargeable on every extended payment at the rate determined in
accordance with &#xA7; 58.1-15.

C. A permit granted pursuant to this section shall continue to be valid until
surrendered by the holder or cancelled for cause by the Tax Commissioner.

D. A person holding a direct payment permit that has not been cancelled shall
not be required to pay the tax to the communications services provider as
otherwise required by this chapter. Such persons shall notify each
communications services provider from whom purchases of taxable communications
services are made of their direct payment permit number and that the tax is
being paid directly to the Tax Commissioner. Upon receipt of notice, a
communications services provider shall be absolved from all duties and
liabilities imposed by this chapter for the collection and remittance of the tax
with respect to sales of taxable communications services to the direct payment
permit holder. Communications services providers who make sales upon which the
tax is not collected by reason of the provisions of this section shall maintain
records in a manner that the amount involved and identity of each purchaser may
be ascertained.

E. Upon the cancellation or surrender of a direct payment permit, the provisions
of this chapter, without regard to this section, shall thereafter apply to the
person who previously held the direct payment permit, and that person shall
promptly notify in writing communications services providers from whom purchases
of taxable communications services are made of such cancellation or surrender.
Upon receipt of notice, the communications services provider shall be subject to
the provisions of this chapter, without regard to this section, with respect to
all sales of taxable communications services thereafter made to the former
direct payment permit holder.

HISTORY: 2006, c. 780.